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Dubai hotel prices drop after mercury rises

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Dubai hotel prices

UAE: Dubai hotel prices drop after mercury rises

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Last week, temperatures in the Middle East soared to 104°F in Dubai, 106°F in Riyadh, and surpassed 120°F in Abu Dhabi in June.

Such extreme heat poses challenges for attracting tourists, but Middle Eastern countries employ strategies to maintain visitor numbers.

In Dubai, one effective approach is significantly reducing hotel rates. During June and July, luxury hotels were available for $250 a night, a sharp decline from the year-to-date average of $435, according to Philip Wooler, Middle East head for STR, a firm that tracks hotel performance by collaborating with hotel owners and operators.

In contrast, December, the peak travel month with its more pleasant temperatures, sees hotel occupancy rates in Dubai reach up to 90%.

Luxury hotel rates average $620 per night, often going much higher, while even economy hotels can exceed $280 a night during this period.

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 “I’m a huge advocate that Dubai can do pretty well over the summer months,” state Wooler. “The value for money in Dubai over the summer months is phenomenal. [You have] the best hotels in the world at much lower prices.”

Mamoun Hmidan, the chief business officer at Wego, one of the Middle East’s largest online travel agencies, stated that Dubai has found a way to minimize the decline in tourism during the summer months.

“The message is: Come pamper yourself in the summer. That’s what Dubai is doing,” said Hmidan.

“In general, summer is the low season for the region, that’s what we see every year. But Dubai somehow has managed to work around it. They know how to do it: It’s package-led travel. Hoteliers in Dubai tend to do loads of deals and work with tour operators from countries where travelers are seeking affordable luxury,”  added Hmidan.

Still, the numbers show that visitor numbers drop by about a third. Last July and August, Dubai had around 1.3 million visitors. In December, the peak season, there were nearly 1.8 million visitors.

From June through July 23, the hotel occupancy rate was 67.8%, down from the average of 81% for the year through May, according to government data.

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Hmidan noted that other destinations have taken notice of how Dubai manages to stay busy during the summer.

“We’re seeing other tourism boards in the UAE trying to put something on top of Dubai. Ras Al Khaimah has a lot of discounted packages as well, trying to tie them together to Dubai. Abu Dhabi is doing the same.”

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